I've believed for years that California should charge a much higher severance tax on all oil, gas and any other mineral removed from the state. We now charge around 10cents per barrel Here's an article from LA Times several years ago that explains why we still don't collect more tax.
There's revenue in those hills -- and offshore - latimes.com:
Alaska has a "negative" income tax based upon the revenue it earns from oil. It charges between 25% and 50% of the well-head value. For $100/barrel oil, that would be $24-$50/ barrel. Many other states make huge amounts from their oil and gas. Here's a link to a table that shows all of the states: http://www.ncsl.org/issues-research/energyhome/oil-and-gas-severance-taxes.aspx California's Severance Tax is determined by the State of California Department of Conservation. Here's their report: Why doesn't California charge more? I think the reason is that the Republicans receive so much in contributions from the industry that they will not pass that bill. Of course the environmentalists are now also at fault. Yes, oil and gas drilling and pumping could have an accident. However it is much safer than 30 years ago. With proper inspections, controls, emergency procedures, rapid response clean up ready and available, I think the problem is a non-issue, from an environmental standpoint.
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